Update from DCUSA Michael Walls DCUSA Secretariat 06 October | Energy Networks Association - DCMF

Live DCUSA Change Proposals DCP 108 – Availability of the non-intermittent generator tariff DCP 107 – Update of cross-references in Clause 11 DCP 106 – Visibility to DCUSA Parties regarding applications to the Authority by DNO’s to change Allowed Revenue DCP 105 – Fix Bi-annual Amendment of DUoS tariffs DCP 104 – Shared impact of manifest errors in DUoS charging DCP 103 – Duos Charges for sub 100kw HH settled sites DCP 102 – Credit Cover Calculation of 15 Day Value 06 October | Energy Networks Association - DCMF

Live DCUSA Change Proposals DCP Notification of RAV changes DCP Payment timescales alignment and simplification DCP Change to Schedule 1 – Cover DCP DCUSA Criteria for Urgent Change Proposals DCP Changes to the method of cost allocation employed in the Price Control Disaggregation Model for DNO indirect cost categories specifically associated with the volume of customers using the DNO network DCP Treatment of Transmission Exit Charges in CDCM Price Control Disaggregation Model (Method M) DCP Treatment of LV costs in the Price Control Disaggregation Model in determining tariffs to LDNOs connecting to upstream LDNOs at LV 06 October | Energy Networks Association - DCMF

Live DCUSA Change Proposals 06 October | Energy Networks Association – DCMF DCP Treatment of ‘Load related new connections & reinforcement (net of contributions)’ in the Price Control Disaggregation Model used to determine LDNO discount factors DCP 091 – Publication of Tariffs and Annual Charge Estimates DCP 090 – Nested Networks DCP 088 – Mid Year CDCM Charging Model DCP 087 – Smooth loading characteristics or peaking DCP 084 – User requirements associated with provision of cost information DCP 054 – Revenue Protection / Unrecorded units in to Settlement

DCUSA CDCM Change Proposals 06 October | Energy Networks Association – DCMF DCP 108 – Availability of the non-intermittent generator tariff –The intent of this DCP is to make the non-intermittent generator tariffs available to intermittent generators on request to the final DNO by the Supplier (or directly by the Generator if the Generator is the party to the DCUSA) subject to appropriate administrative arrangements. –The first working group meeting will meet on 10 October 2011 DCP 104 – Shared impact of manifest errors in DUoS charging –This Proposal seeks to change the current arrangements so that in the case of a manifest error, the implementation of the resulting revenue over or under recovery correction is spread over a 3 year period. –Working group has met twice and is finalising the drafting of the Legal text

DCUSA CDCM Change Proposals 06 October | Energy Networks Association – DCMF DCP DUoS Charges for sub 100kw HH settled sites –The intent of this proposal is to provide a mechanism whereby distribution businesses are able to charge the same Use of System charges for customers currently on profile classes 1 – 8 whose suppliers choose to transfer to measurement class E as those customers on Profile classes 1 – 8 and settled under measurement class A. –This CP seeks out a quick fix to the issue to be implemented from next year, while the MIG sub group (HH/NHH chaired by Pat Wormald) will address an enduring solution to be implemented in –A 2 nd RFI was issued to gather further information about “Option 1” which the working group is taking forward as their solution. Responses are due in Friday, 7 October –The Working Group will next meet on 10 October to review the RFI responses, and agree the work plan going forward.

DCUSA CDCM Change Proposals 06 October | Energy Networks Association – DCMF DCP 097 – Changes to the method of cost allocation employed in the Price Control Disaggregation Model for DNO indirect cost categories specifically associated with the volume of customers using the DNO network. DCP 096 – Treatment of Transmission Exit Charges in CDCM Price Control Disaggregation Model (Method M) DCP 095 – Treatment of LV costs in the Price Control Disaggregation Model in determining tariffs to LDNOs connecting to upstream LDNOs at LV DCP 094 – Treatment of ‘Load related new connections & reinforcement (net of contributions)’ in the Price Control Disaggregation Model used to determine LDNO discount factors All the Change Reports, 094 – 097, have been drafted and are awaiting DCUSA Panel approval

DCUSA CDCM Change Proposals 06 October | Energy Networks Association – DCMF DCP 088 – Mid Year CDCM Charging Model –Working Group met on 10 October to sign off the model specification and to agree the Consultation –Proposed implementation: December 2011

Awaiting Ofgem Decision 06 October | Energy Networks Association – DCMF DCP DCUSA Criteria for Urgent Change Proposals DCP Publication of Tariffs and Annual Charge Estimates DCP Smooth loading characteristics or peaking DCP Statutory Application of NTC All decisions should be received by the end of October

Questions or Comments 06 October | Energy Networks Association – DCMF Michael Walls Governance Services Senior Analyst Tel: